05.19.14
Maybe your company recently has been blamed for an FDA recall or class-action lawsuits tied to alleged device malfunctions, with animal activist groups condemning the CEO personally. There may be no specific threat against executives—no anonymous letters threatening violence—but radical activists may want to confront company leadership, embarrass them or even harm them.
Real or perceived mistreatment of animals in developing drugs and medical devices can evoke strong, even violent reactions. Consider the passions aroused by the dog abuse case involving professional football player Michael Vick.
Here are some examples specific to the life-science sector:
Such actions can adversely impact medical device firms in many ways.
These include:
Real or perceived mistreatment of animals in developing drugs and medical devices can evoke strong, even violent reactions. Consider the passions aroused by the dog abuse case involving professional football player Michael Vick.
Here are some examples specific to the life-science sector:
- In the United Kingdom, a firebombing was linked to animal activism;
- A spokesman for an organization calling itself the Animal Liberation Front appeared on the TV show “60 Minutes” and said that killing a researcher who “tortures animals for profit” would be morally justified;
- The National Association of Biomedical Research reports 560 occurrences involving animal rights activists since 1981. These include gestures ranging from rabbit theft to vandalism, assault and death threats; and
- The U.S. Federal Bureau of Investigation’s Ten Most Wanted list includes an animal activist who has been indicted for planning to bomb Chiron, a vaccine manufacturer and Shaklee, a manufacturer of vitamins and shampoos.
- Demonstrations at manufacturing or research and development facilities. These can disrupt a firm’s ability to conduct ongoing business. Bad public relations can convey a negative image of the company. Further, employees can become dispirited and suffer low morale from the negativity and stress occasioned by being in the gun sights of an activist group;
- Acts of vandalism against property—both real property and movable property. The cost to replace or repair damaged property can be significant. Plus, adverse economic reverberations flow from loss of use of such property;
- Violent acts against company employees and executives. Company employees are key assets who leave the office at the end of each day. The firm has a vested interest in seeing them return—unharmed—the next morning;
- Boycotts against companies. These can adversely impact a company’s financial health; and
- Off-site demonstrations. These kinds of activities also spawn negative publicity and shape public perceptions about the respective firm.
Such actions can adversely impact medical device firms in many ways.
These include:
- Interrupted business operations, including research, development and manufacturing;Damaged company reputation from adverse publicity;
- Diminished stock price;
- Lower employee morale;
- Challenges in talent recruitment;
- Interrupted supply chain, if activist groups target firms doing business with the medtech company; and
- Compromised venture capital funding/investment.